Commercial Realty in Greece Shows Steady Growth
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Loading... - Bogdan Sidorov
- 15 Oct 2024
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The commercial real estate market in Greece is experiencing a consistent upward trend, with projections indicating continued growth over the next five years. The majority of investments in the Greek market are concentrated on office buildings and tourist properties. Corina Saias, Managing Director of Premier Realty, emphasized that the commercial real estate sector in Greece, encompassing offices, shops, hotels, and logistics, is expected to grow at an annual rate of 0.46% from 2024 to 2029. This growth is primarily driven by investments in office buildings and tourism-related properties.
Saias referenced data from Spitogatos to highlight significant price increases since 2019. Office prices per square meter have surged by 47.3% in central Athens, 40.6% in the eastern suburbs, 49.9% in the southern suburbs, and 33.3% in western Athens. The demand for energy-efficient office buildings in prime locations remains robust, while other office spaces may face a decline in demand in the coming years. Prices for warehouses and storage facilities have also seen substantial growth, with increases of 45.7% in central Athens, 52% in the eastern suburbs, 39.3% in the southern suburbs, and 28.4% in western Athens.
From 2019 to 2024, the prices per square meter for commercial properties have risen from €8 to €10.4 in central Athens, from €5 to €7.7 in the eastern suburbs, from €7.8 to €10.7 in the southern suburbs, and from €5.4 to €7.6 in western Athens. Saias also identified two emerging trends in the Greek commercial real estate market. The first is the shift toward smart buildings, which utilize IoT and automated technologies to manage systems such as lighting, security, and HVAC. The global smart building market was valued at $108 billion in 2023.
The second trend is the rise of mixed-use developments, which combine residential, retail, office spaces, and entertainment options like cinemas. These projects are gaining popularity due to their diverse tenant mix, steady cash flow, and ability to maintain low vacancy rates by offering housing at various price points while promoting sustainability. As these trends continue to shape the market, Greece's commercial real estate sector is poised for sustained growth and innovation.
